Planners and advisers providing tax (financial) advice services as part of their financial advice to clients for a fee have to be registered as a tax (financial) adviser by 30 June in order to be operating legally, the Tax Practitioners Board (TPB) warned.
TPB member, Julie Berry said advisers had the option of standard registration or transitional registration, the latter of which had to be applied for by the end of the 2016-2017 financial year.
Berry said the TPB requirements would need planners to show sufficient industry experience to be able to provide tax (financial) advice, under a set of guidelines:
- Equivalent of 18 months or longer of full-time experience – did not need to be continuous;
- Experience related to tax (financial) advice services or tax advice given in the context of financial advice;
- Fit a ‘competent standard’ and possess the skill, ability and knowledge required to perform a tax (financial) advice service so that clients can entrust their financial and tax affairs to the adviser; and
- Have ability to meet professional indemnity insurance requirements and be fit and proper.
“Individuals, if their registration is approved, will be registered for at least three years from the day the TPB makes its decision,” Berry said.
“This then gives the individual at least three years to meet the full registration requirements, while also forming the sufficient number for their company or partnership’s registration, if required.”
Berry said advisers could benefit from transitional registration which would include an increased timeframe to obtain necessary education requirements. Those under a transitional registration would have until July 2020 to be fully compliant under new standard requirements.